Socioeconomic Determinants of Entrepreneurship among Older Persons in Ghana
DOI:
https://doi.org/10.47963/jobed.v13i.1821Keywords:
enterprise, older persons, necessity theory, opportunity theory, GhanaAbstract
Despite the substantial involvement of older persons in entrepreneurial activities in Ghana, limited scholarly attention has been directed towards understanding the motivations behind enterprise creation in later life. Much of the existing research on entrepreneurship in the country has focused on youth, leaving a gap in knowledge regarding the socioeconomic factors that influence entrepreneurial engagement among older adults. This study addresses that gap by examining the determinants of grey entrepreneurship using a probit regression model applied to data from the Seventh Round of the Ghana Living Standards Survey. The analysis reveals that both necessity-driven factors (gender [woman], limited access to pensions and remittances, and low educational attainment) and opportunity-driven factors (wealth, urban residence, and good health status) significantly shape entrepreneurial decisions in old age. Importantly, the study contributes to the evolving discourse on entrepreneurship by challenging the traditional binary classification of entrepreneurial motivation. The evidence suggests that older entrepreneurs in Ghana navigate a continuum of motivations, influenced by both personal agency and structural conditions. This complexity highlights the need for inclusive and context-sensitive policy interventions. Therefore, the study advocates for the establishment of a non-contributory pension scheme to safeguard the economic security of all older adults and calls for collaborative action among state agencies, credit institutions, and other stakeholders to provide a supportive and enabling environment for entrepreneurial activity among Ghana’s ageing population.
Downloads
References
Abdulai, M., Zakaria, H., & Abdulai, A. (2021). A study of small and medium enterprises in Ghana: Entrepreneurial outlook. Academy of Entrepreneurship Journal, 25(S2), 1–10.https://www.abacademies.org/articles/A-study-of-small-and-medium-enterprises-in-Ghana-1528-2651-25-S2-775.pdf
Abekah‐Carter, K., Awuviry‐Newton, K., Oti, G. O., & Umar, A. R. (2022). The unmet needs of older people in Nsawam, Ghana. Health & Social Care in the Community, 30(6), e4311-e4320. https://doi.org/10.1111/hsc.13824
Aboderin, I., & Beard, J. R. (2022). Population ageing and social protection in Ghana. In S. Vanderbeck & I. Aboderin (Eds.), Ageing in Sub-Saharan Africa: Spaces and practices of care (pp. 45–62). Springer. https://doi.org/10.1007/978-3-030-97243-4_3
Alam, M. S., Biswas, K., & Sulphey, M. M. (2021). A case study on the entrepreneurial process of push and pull women entrepreneurs. South Asian Journal of Business and Management Cases, 10(2), 207-217. https://doi.org/10.1177/22779779211028536
Amoah, P. A., Edusei, J., & Amuzu, D. (2019). The status of older adult care in contemporary Ghana: A sociological perspective. Frontiers in Sociology, 4, 1–10. https://doi.org/10.3389/fsoc.2019.00001
Amorós, J. E., Cristi, O., & Naudé, W. (2021). Entrepreneurship and subjective well-being: Does the motivation to start-up a firm matter? Journal of Business Research, 127, 389–398. https://doi.org/10.1016/j.jbusres.2020.11.044
Amorós, J. E., Leporati, M., & Torres-Marín, A. (2023). Senior entrepreneurship dynamics: A Latin American perspective. International Journal of Entrepreneurial Behaviour & Research. Advance online publication. https://doi.org/10.1108/IJEBR-07-2022-0650
Amorós, J. E., Leporati, M., Torres-Marín, A. J., & Roses, S. (2024). Opportunity entrepreneurship after 65: Relevant factors in OECD countries. International Entrepreneurship and Management Journal, 20(2), 1215-1244. https://doi.org/10.1007/s11365-024-00953-x
Berna, D., & Johanna, F. (2008). Wealth, Industry and the Transition to Entrepreneurship (2008). Fordham University Department of Economics Discussion Paper No. 2008-09, Available at SSRN:
https://ssrn.com/abstract=1143525 or http://dx.doi.org/10.2139/ssrn.1143525
Block, J. H., & Wagner, M. (2010). Necessity and opportunity entrepreneurs in Germany: characteristics and earning s differentials. Schmalenbach Business Review, 62, 154-174. https://doi.org/10.1007/BF03396803
Bowen, H. P., & De Clercq, D. (2008). Institutional context and the allocation of entrepreneurial effort. Journal of International Business Studies, 39, 747-767. https://doi.org/10.1057/palgrave.jibs.8400343
Brewer, J. (2014). Defining and classifying necessity entrepreneurs: A review of the literature. Necessity Entrepreneurs, 1-22. https://doi.org/10.4337/9781781956182.00010
Burman, L. E., McClelland, R., & Lu, C. (2018). The effects of estate and inheritance taxes on entrepreneurship. Tax Policy Center. Retrieved from:
Cagetti, M., & De Nardi, M. (2003). Entrepreneurship, frictions, and wealth (Federal Reserve Bank of Minneapolis Research Department Working Paper No. 620). Retrieved June 13, 2025, from https://www.jstor.org/stable/pdf/community.28111466.pdf.
Coates, D., & Lawless, M. (2024). Entrepreneur characteristics and determinants of self-employment across Europe (No. 772). ESRI Working Paper.
Coduras-Martínez, F., Dinis, A., Buttarazzi, D., & Riso, S. (2020). Entrepreneurial competencies in higher education: Analysis of the expert model. Journal of Business Research, 115, 1–6. https://doi.org/10.1016/j.jbusres.2019.11.054
Conroy, T., & Rupasingha, A. (2025). Childcare closures and female entrepreneurship. Annals of Regional Science 74, 67 (2025). https://doi.org/10.1007/s00168-025-01393-3
Curran, J., & Blackburn, R. A. (2001). Older people and the enterprise society: Age and self-employment propensities. Work, Employment and Society, 15(4), 889–902. https://doi.org/10.1177/09500170122127124
Danson, M., Galloway, L., Richards, J., & Sang, K. (2020). Grey entrepreneurship: Implications for policy and practice. Local Economy, 35(5), 457–472. https://doi.org/10.1177/0269094220954671
Dencker, J. C., Bacq, S., Gruber, M., & Haas, M. R. (2019). Reconceptualizing necessity entrepreneurship: A contextualized framework of entrepreneurial processes under the conditions of necessity. Academy of Management Perspectives, 33(4), 473–491. https://doi.org/10.5465/amp.2017.0008
Domfe, G., Osei, R. D., & Ackah C. (2013). Economic Exclusion and Working Poverty: The Case of the Informal Sector Workers in the MiDA Intervention Zone in Ghana. Oguaa Journal of Social Sciences, Vol. 7 (1): pp. 111 – 135
Domfe, G., Ackah C., Afutu-Kotey, R. L., & Oduro, A. D. (2017). Gender Perspectives on
Socio-economic Determinants of Ownership of Enterprise in Ghana. Journal of Economics and Policy Analysis, Vol. 2 (21), pp. 162-184.
Dovie, D. A. (2018). Leveraging Healthcare Opportunities for Improved Access among Ghanaian Retirees: The Case of Active Aging. Social Sciences, 7(6), 92. https://doi.org/10.3390/socsci7060092
Dovie, D. A. (2019). The status of older adult care in contemporary Ghana: A profile of some emerging issues. Frontiers in Sociology, 4, 1-12. https://doi.org/10.3389/fsoc.2019.00025
Dzingirai, M., & Ndofirepi, T. M. (2024). Challenges faced in elderly entrepreneurship: evidence from Zimbabwean older entrepreneurs. In Fostering Long-Term Sustainable Development in Africa: Overcoming Poverty, Inequality, and Unemployment (pp. 29-48). Cham: Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-61321-0_3
Essuman, A., & Mate-Kole, C. C. (2021). Ageing in Ghana. Ageing Across Cultures: Growing Old in the Non-Western World, 1-11. https://doi.org/10.1007/978-3-030-76501-9_1
Elia, G., Margherita, A., & Passiante, G. (2020). Digital transformation and entrepreneurship: A systematic literature review. Global Business and Organizational Excellence, 39(6), 1–15. https://doi.org/10.1002/joe.22061
Fairlie, R. W., & Fossen, F. M. (2019). Opportunity versus necessity entrepreneurship: Two components of business creation. CESifo Working Paper Series, No. 7980. https://www.cesifo.org/en/publikationen/2019/working-paper/opportunity-versus-necessity-entrepreneurship-two-components-business
Fonseca B, R., Michaud, P.-C., & Sopraseuth, T. (2007). Entrepreneurship, wealth, liquidity constraints, and start-up costs (RAND Working Paper No. WR-500). RAND Corporation. Retrieved June 13, 2025, from
https://www.rand.org/pubs/working_papers/WR500.html
Global Entrepreneurship Monitor. (2025). Global Entrepreneurship Monitor 2024/2025 Global Report. GEM Consortium. https://www.gemconsortium.org/report/gem-2024-2025-global-report
Ghana Statistical Service. (2019). Ghana Living Standards Survey Round 7 (GLSS 7): Main report. Accra, Ghana: Ghana Statistical Service.
Ghana Statistical Service (2022), Population and Housing Census Report, Ministry of Finance and Economic Planning, Accra.
Giacomin, O., Janssen, F., Guyot, J. L., & Lohest, O. (2023). Opportunity and/or necessity entrepreneurship? The impact of the socio-economic characteristics of entrepreneurs. Sustainability, 15(14), 10786. https://doi.org/10.3390/su151410786
Gimmon, E., Yitshaki, R., & Hantman, S. (2018). Entrepreneurship in the third age: retirees' motivation and intentions. International Journal of Entrepreneurship and Small Business, 34(3), 267-288. https://doi.org/10.1504/IJESB.2018.092743
Gries, T., & Naudé, W. (2011). Entrepreneurship, structural change and a global economic crisis. Entrepreneurship Research Journal, 1(3), 1–28. https://doi.org/10.2202/2157-5665.1029
Guzman, J. J., & Merlo, J. I. (2024). Determinants of entrepreneurship and self-employment for older people in Chile. International Journal of Business Environment, 15(1), 25-40. https://doi.org/10.1504/IJBE.2024.135695
Huang, Y., Li, P., Chen, L., & Wang, J. (2023). Opportunity or necessity entrepreneurship? A study based on the national system of entrepreneurship. Journal of Innovation & Knowledge, 8(4), 1-11. https://doi.org/10.1016/j.jik.2023.100448
Institute for Fiscal Studies Ghana. (2019). Leslie Pension Presentation. Retrieved on June 6, 2025, from IFS Ghana https://ifsghana.org/wp-content/uploads/2019/07/Leslie-Pension-Presentation.pdf
Joel, M., & Oguanobi, T. (2024). Gendered dynamics of entrepreneurial leadership and innovation. In Entrepreneurial Leadership (pp. 1–18). Springer. https://link.springer.com/rwe/10.1007/978-3-030-68128-9_36-1
Kantor, P. (2002). Gender, microenterprise success and policy implications in the informal sector: Evidence from India. Canadian Journal of Development Studies, 23(4), 817–836. https://doi.org/10.1080/02255189.2002.9668913
Kautonen, T. (2012). Age and grey entrepreneurship. In M. Minniti (Ed.), The dynamics of entrepreneurship: Evidence from the Global Entrepreneurship Monitor data (pp. 117–139). Springer. https://link.springer.com/content/pdf/10.1057/9780230355057_4
Kautonen, T., Down, S., & Minniti, M. (2014). Age and entrepreneurship: The role of age in entrepreneurial activity. Journal of Business Venturing, 29(2), 193–210. https://doi.org/10.1016/j.jbusvent.2012.10.005
Kpessa-Whyte, M., & Tsekpo, K. (2020). Lived experiences of the elderly in Ghana: Analysis of ageing policies and options for reform. Journal of Cross-Cultural Gerontology, 35, 341-352. https://doi.org/10.1007/s10823-020-09401-z
Kubik, Z., Getahun, T. D., Adegbola, P. Y., Beye, A., & Mbaye, A. A. (2024). Opportunity or necessity? Youth agripreneurs in Benin, Ethiopia and Senegal (No. 238). ZEF Working Paper Series.
Leporati, M., Torres Marin, A. J., & Roses, S. (2021). Senior entrepreneurship in Chile: necessity or opportunity? A GEM perspective. European Business Review, 33(6), 892-917. https://doi.org/10.1108/EBR-11-2020-0277
Lim, W. M., Bansal, S., Kumar, S., Singh, S., & Nangia, P. (2024). Necessity entrepreneurship: a journey from unemployment to self‐employment. Global Business and Organizational Excellence, 43(6), 41-58. https://doi.org/10.1002/joe.22256
Liñán, F. (2020). The effect of youth entrepreneurship education programmes: Two large-scale studies. SAGE Open, 10(3), 1–15. https://doi.org/10.1177/2158244020956976
Maâlaoui, A. (Ed.). (2019). Handbook of Research on Elderly Entrepreneurship. Springer.
Mahama, T. A. K., & Maharjan, K. L. (2017). Determinants of livelihood diversification in Ghana from the national livelihood strategies and spatial perspective. Journal of International Development and Cooperation, 23(1), 75-90.
McMullen, J. S., Bagby, D. R., & Palich, L. E. (2008). Economic freedom and the motivation to engage in entrepreneurial action. Entrepreneurship Theory and Practice, 32(5), 875–895. https://doi.org/10.1111/j.1540-6520.2008.00260.x
Megbetor, E. K. (2024). Examining the Ghanaian pension system: An economic perspective. Wisconsin Journal of Arts and Sciences, 6(1), 4–24. Retrieved from Wisconsin International University College
Mead, D. C., & Liedholm, C. (1998). The dynamics of micro and small enterprises in developing countries. World development, 26(1), 61-74.
https://doi.org/10.1016/S0305-750X(97)10010-9
Mensah, S., & Nyarko, E. (2024). Bridging the SME financing gap in Ghana: Policy options
and institutional reforms. International Journal of Economics, Commerce and Management, 12(1), 55–72.
Mersha, T., Sriram, V., & Hailu, M. (2010). Nurturing opportunity entrepreneurs in Africa: Some lessons from Ethiopia. Journal for Global Business Advancement, 3(2), 155-175. https://doi.org/10.1504/JGBA.2010.0332
Ministry of Employment and Social Welfare. (2010). National Ageing Policy: Ageing with security and dignity. Government of Ghana.
Minniti, M., Bygrave, W. D., & Autio, E. (2006). Global Entrepreneurship Monitor: 2005
Executive Report. Babson College and London Business School. https://www.gemconsortium.org/report/gem-2005-global-report
Minniti, M., & Lévesque, M. (2010). Entrepreneurial types and economic growth. Journal of Business Venturing, 25(3), 305-314. https://doi.org/10.1016/j.jbusvent.2008.10.002
Mohamad, M. A., & Chin, O. (2020). Demographic Factors, Entrepreneurial Munificence And Business Networking And Youth Entrepreneurs’ Success. In N. S. Othman, A. H. B. Jaaffar, N. H. B. Harun, S. B. Buniamin, N. E. A. B. Mohamad, I. B. M. Ali, N. H. B. A. Razali, & S. L. B. M. Hashim (Eds.), Driving Sustainability through Business-Technology Synergy, vol 100. European Proceedings of Social and Behavioural Sciences (pp. 642-651). European Publisher. https://doi.org/10.15405/epsbs.2020.12.05.70
Molina, J. A., Ortega, R., & Velilla, J. (2017). Older entrepreneurs-by-necessity using fuzzy set methods: differences between developed and developing countries. University Library of Munich, Germany.
Moulton, J. G., & Scott, J. C. (2016). Opportunity or necessity? Disaggregating self-employment and entry at older ages. Social Forces, 94(4), 1539-1566. https://doi.org/10.1093/sf/sow026
Nhodo, L., Maunganidze, F., Gukurume, S., Nyamubarwa, W., & Marimba, G. (2013). Surviving on the margins of the formal employment, an analysis of the life experiences of pensioners in Masvingo Zimbabwe. Current Research Journal of Social Sciences, 5(1), 28-34. https://doi.org/10.1108/EBR-11-2020-0277
Nkansah, O. J., Awuviry-Newton, K., Gyasi, M., Newton, A., & Boateng, A. S. A. (2021). “Who doesn’t Have Challenges? I Have a Lot of Challenges”: Exploring the Challenges and Coping Strategies of Neglected Older Adults in Ghana. Journal of Cross-Cultural Gerontology, 36(1), 91-104. https://doi.org/10.1007/s10823-020-09419-3
Ongoh, M., Abekah-Carter, K., & Godi, A. H. (2023). Life after Retirement: exploring the survival strategies of SSNIT pensioners in the Greater Accra Region of Ghana. Journal of Cross-Cultural Gerontology, 38(4), 327-342. https://doi.org/10.1007/s10823-023-09487-1
Opoku, K., Domfe, G. and Adu Boahen, E. (2025), "Determinants of older people labour market decision in Ghana", Journal of Economic Studies, Vol. 52 No. 1, pp. 72-87. https://doi.org/10.1108/JES-07-2023-0345
Ortega-Lapiedra, R. (2020). Why Senior Workers Are Becoming Entrepreneurs: Necessity or Passion?. In The Entrepreneurial Behaviour: Unveiling the cognitive and emotional aspect of entrepreneurship (pp. 271-280). Emerald Publishing Limited. https://doi.org/10.1108/978-1-78973-507-920201018
Osei, R. D., & Lambon‐Quayefio, M. (2021). Cash transfers and the supply of labour by poor households: Evidence from the livelihood empowerment against poverty program in Ghana. Review of Development Economics, 25(3), 1293-1304. https://doi.org/10.1111/rode.12784
Owusu, A., & Asare, K. (2018). Challenges facing micro and small enterprises in accessing credit in Ghana: A case study of Suame Magazine. Journal of African Business, 19(2), 245–263. https://doi.org/10.1080/15228916.2018.1439981
Patel, P. C. (2025). Look before you leap: Earnings gaps and elderly self-employment. Journal of Business Research, 189,1-33. https://doi.org/10.1016/j.jbusres.2024.115081
Peek, M. (2025). Rural micro-entrepreneurs: Building thriving businesses in remote areas. Biznicality. Retrieved from: https://www.biznicality.com/rural-micro-entrepreneurs-building-thriving-businesses-in-remote-areas/
Perenyi, A., Zolin, R., & Maritz, A. (2018). The perceptions of Australian senior entrepreneurs on the drivers of their entrepreneurial activity. International Journal of Entrepreneurial Behavior & Research, 24(1), 81-103
https://doi.org/10.1108/IJEBR-12-2016-0424
Reynolds, P. D., Bygrave, W. D., Autio, E., Cox, L. W., & Hay, M. (2002). Global
Entrepreneurship Monitor: 2002 Executive Report. Babson College, London Business School, and Ewing Marion Kauffman Foundation. https://www.gemconsortium.org/report/gem-2002-global-report
Reynolds, P., Bosma, N., Autio, E., Hunt, S., De Bono, N., Servais, I., Lopez-Garcia, P., &
Chin, N. (2005). Global Entrepreneurship Monitor: Data collection design and implementation 1998–2003. Small Business Economics, 24(3), 205–231. https://doi.org/10.1007/s11187-005-1980-1
Rizvi, H. (2024). Opportunity vs necessity entrepreneurship: Choosing one over the other for success. Hidayat Rizvi. Retrieved from https://hidayatrizvi.com/opportunity-vs-necessity-entrepreneurship
Saiz-Álvarez, J. M., & Coduras-Martínez, A. (2020). Territorial maps of senior entrepreneurship: A multidimensional analysis based on GEM data. Entrepreneurship and Family Business Vitality: Surviving and Flourishing in the Long Term, 133-150. https://doi.org/10.1007/978-3-030-15526-1_8
Santini, S., Baschiera, B., & Socci, M. (2020). Older adult entrepreneurs as mentors of young people neither in employment nor education and training (NEETs): Evidence from a multi-country intergenerational learning programme. Educational Gerontology. pp. 1-20, https://doi.org/10.1080/03601277.2020.1714142
Segbenya, M., Onomah, J., Kangmennaang, R., & Grantson, E. (2024). Exploring the awareness, preparedness and the state of pension among informal workers in Ghana. Social Sciences & Humanities Open, 9, 1-11. https://doi.org/10.1016/j.ssaho.2023.100776
Shepherd, D. A., & Patzelt, H. (2017). Trailblazing in entrepreneurship: Creating new paths for understanding the field. In D. A. Shepherd & H. Patzelt (Eds.), Trailblazing in entrepreneurship (pp. 1–20). Palgrave Macmillan. https://doi.org/10.1007/978-3-319-48701-4_1
Singh, G., & DeNoble, A. (2003). Early retirees as the next generation of entrepreneurs. Entrepreneurship Theory and Practice, 27(3), 207–226. https://doi.org/10.1111/1540-8520.00005
Smolka, K. M., Heugens, P. P. M. A. R., Bacq, S., & Slade Shantz, A. F. (2025). Toward a shared agenda for necessity entrepreneurship research: Definitions, theories, and perspectives. In S. Bacq, K. M. Smolka, A. F. Slade Shantz, & P. P. M. A. R. Heugens (Eds.), Necessity Entrepreneurship: Getting Beyond the Binary (Vol. 92, pp. 13–35). Emerald Publishing. https://doi.org/10.1108/S0733-558X20250000092004
Stephens, S., & Hegarty, C. (2022). Retirees from public service: the journey to small enterprise ownership. Small Enterprise Research, 29(1), 52-67. https://doi.org/10.1080/13215906.2021.1901141
Storey, D. J. (1991). The birth of new firms—does unemployment matter? A report prepared for the Employment Department. London: Employment Department.
Subanti, S., Hakim, A. R., & Sulandari, W. (2021). The determinant of entrepreneurial work for elderly in Indonesia. In AIP Conference Proceedings (Vol. 2329, No. 1). AIP Publishing.
Tervo, H., & Haapanen, M. (2017). Opportunity- and necessity-driven self-employment among older people in Finland. In I. Aaltio, A. J. Mills, & J. H. Mills (Eds.), Ageing, organisations and management (pp. 255–276). Springer.
https://link.springer.com/chapter/10.1007/978-3-319-58813-1_12
United Nations Department of Economic and Social Affairs Population Division. (2017). World population prospects: The 2017 revision, key findings and advance tables. UNDESA.
Weber, P., & Schaper, M. (2004). Understanding the grey entrepreneur: Age-related barriers to business start-up. Journal of Enterprising Culture, 12(01), 1–23. https://doi.org/10.1142/S0218495804000037
Weber, C., Fasse, A., Haugh, H. M., & Grote, U. (2023). Varieties of necessity entrepreneurship–New insights from Sub-Saharan Africa. Entrepreneurship Theory and Practice, 47(5), 1843-1876.
https://doi.org/10.1177/10422587221111737
Weller, C. E., Wenger, J. B., Lichtenstein, B., & Arcand, C. (2016). Push or pull: Changes in
the relative risk and growth of entrepreneurship among older households. The Gerontologist, 56(Suppl_3), 540–541.
https://www.rand.org/pubs/external_publications/EP66740.html
Williams, C. C., & Gurtoo, A. (Eds.). (2017). Routledge handbook of entrepreneurship in developing economies (pp. 13-16). London: Routledge.
Yessoufou, A. W., Blok, V., & Omta, S. W. F. (2018). The process of entrepreneurial action at the base of the pyramid in developing countries: a case of vegetable farmers in Benin. Entrepreneurship & Regional Development, 30(1-2), 1-28. https://doi.org/10.1080/08985626.2017.1364788
Zelekha, Y. (2021). What stands behind the gender gap in entrepreneurship? Untangling the intergenerational parental role. PLOS ONE, 16(12), e0261108. Retrieved from: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0261108
Zhu, Y., Collins, A., Xu, Z., Sardana, D., & Cavusgil, S. T. (2022). Achieving aging well through senior entrepreneurship: a three-country empirical study. Small Business Economics, 59(2), 665-689. https://doi.org/10.1007/s11187-021-00564-8
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 George Domfe, Kwadwo Opoku, and Emmanuel Kumi
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
